If you are considering buying your first property in Malta the amount of information can be overwhelming. Therefore, we have put together an FAQ and a step by step guide for first-time-buyers in Malta to make the property search easier.
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First-time Buyers’ Scheme FAQ
What is the first-time buyers’ scheme in Malta?
The first-time buyers’ scheme is offered by the Maltese government for persons buying their first property in Malta. A first-time buyer is exempt from the stamp duty of 5 % on the first € 175.000 of the properties’ price and can thus save up to € 6500 €. The remaining value of the property is taxed with the standard 5 % stamp duty rate.
Who is eligible for the first-time buyers’ scheme?
All Maltese and EU citizens who buy their first property in Malta as their primary residence are eligible for the first-time buyers’ scheme. Residents from countries outside the EU cannot benefit from the first-time buyers’ scheme and need to apply for an AIP permit to purchase property in Malta.
Step by step guide for first-time buyers in Malta
Our step by step guide for first-time buyers’ summarizes the most important steps of the property buying process. For a more detailed explanation of the single steps please read our property buyers’ guide.
- Determine your budget
Before you start searching for a new property you should set a budget for your new home. Please keep in mind that banks usually finance up to 90 % of the property price. With our home loan calculator, you can easily calculate the rates of your mortgage.
- Find the right property
The easiest way to find a property is through the help of a real estate agent or a real estate agency. Alternatively, you can also search in Facebook groups to find a property.
- Sign the promise of sale
Once you have chosen a property the konvenju (promise of sale) will be signed. This document, drafted by a notary, binds buyer and vendor to conclude the property purchase within a specific time period called ‘the term of konvenju‘.
- Sign the final deed of sale
At the end of the term of konvenju the final deed of sale will be signed in the presence of a notary. With the signature, the homeownership will be transferred from the seller to the buyer.
If you have further questions about the first-time buyers’ scheme in Malta feel free to leave a comment or reach out to us. In case you are ready to start your property search, please view our listed properties for sale.
Dimitri De Filippo
on said
hi, do I have to pay the stamp duties I didn’t pay as a first time buyer, if I sell the property 1 year after I’ve bought it?
Thanks
Julien Hessler
on said
Hi Dimitri, no you don’t have to pay the stamp duty. However, you have to the property transfer tax at a rate of 5% of the selling price. However, if you have lived in your property for at least three years and then sell it within 12 months you are exempt from paying the property selling tax. You can read more about this here: malta-homes.com/selling-property-malta/
Maria
on said
”Residents from countries outside the EU cannot benefit from the first-time buyers’ scheme and need to apply for an AIP permit to purchase property in Malta.”
How about Non-EU residents which hold long term permit in Malta? Can they benefit from first time buyers scheme?
Thanks.
Julien Hessler
on said
Hello Maria,
yes, unfortunately, you still need an AIP permit.